BREAKTHROUGHS BLOG

February 15, 2012

Obama’s FY 2013 budget request raises concerns for global health R&D

On Monday, President Obama released his Administration’s much-anticipated FY 2013 budget request to mixed reviews. In his introduction to the overall budget request, Obama emphasized that research and development (R&D) programs are essential
to the US economy and the country’s future. He even highlighted the work of the National Institutes for Health (NIH) and the Food and Drug Administration
(FDA) in this area. When looking at the budget numbers for global health, Obama’s emphasis on R&D in his introduction played out in various ways,
with some good and bad news.

Overall, the President’s request was in line with the rumors that preceded its release. Global health numbers faced nearly across-the-board decreases when
compared with FY 2012 levels, although the broader State and Foreign Operations account did receive an increase. Under the State and Foreign Operations account:

The Global Fund To Fight AIDS, Tuberculosis and Malaria and the GAVI Alliance received major increases.

Most global health line items in the budget for the US Agency for International Development (USAID)—aside from family planning
and reproductive health—received reductions in funding, some by as much as 25 percent. These funding cuts could drastically affect USAID’s
ability to support global health R&D projects.

More flat-funding was seen at the Centers for Disease Control and Prevention (CDC). HIV/AIDS and polio stayed essentially the same
as FY 2012, with malaria receiving a small increase. Otherwise, global health programs at CDC were requested at last year’s levels.

Further drastic cuts at crucial Department of Defense research programs on malaria, HIV/AIDS, and neglected diseases add to the concerning
budget slashing.

It is important to note that the President’s Budget Request is not the last word on global health R&D funding. Congress has the authority to change
the funding levels as it sees fit. However, it could be difficult to justify spending above what the Administration views as appropriate, especially
given the current fiscal crisis and the shortened election-year appropriations process.

Although some of the proposed reductions may appear to be minor, given the larger picture of the federal budget, they will certainly have serious effects
on R&D projects—both for those now on the cusp of groundbreaking results, and for those in the future. The Administration has tried to soften
the blow of these budget reductions by pointing out that cost-savings can be found in global health scientific advances like newer HIV drugs,
inexpensive diagnostics, and streamlined vaccine delivery devices. It’s absolutely true that these new tools can save dollars while they save lives.
The question is, if we cut US global health R&D funding now, will we have these urgently-needed advances to rely on five or ten years down the
road?

More information on the President’s budget request can be found at the following links: